Humane Wage: What the 1970 minimum wage would be worth today if it kept pace with housing prices, gold, or money supply.
Fair Wage: What the 1970 median wage would be worth today under the same adjustments.
Actual Minimum Wage: Current legal minimum wage.
Current Median Wage: The actual median hourly wage based on recent labor statistics.
Note: We make extensive use of interpolation and extrapolation based on available data points. As such, shown data is rather approximate. More details on methodology at the bottom of the page.
Data interpolated from available historical points
Comparison based on extrapolated data for , adjusted by
Baseline Year: 1970 was chosen as the baseline because it represents a period when minimum wage had significantly stronger purchasing power relative to housing, basic goods, and investments. It predates major structural shifts in wage-to-asset price relationships.
Wage Data: US 1970 minimum wage ($1.60/hour) from Department of Labor records. US median wage (~$3.50/hour) estimated from 1979 BLS data adjusted backward. German 1970 data estimated from average industrial worker wages (approximately DM 5/hour, ~$2.50 at 1970 exchange rates). Current minimum wages: US $7.25 federal, Germany €12.82 (2024).
Adjustment Calculations: For each metric, we calculate: Adjusted Wage = 1970 Wage × (Current Metric Value / 1970 Metric Value). This shows what wages would be if they had grown at the same rate as the chosen metric.
Money Supply (M3): US M3 data from Federal Reserve (discontinued 2006, using M2 as proxy: 1970 ~$601B, 2025 ~$21.3T). German M3 estimated at ~DM 180B in 1970, with Eurozone growth approximated at 35x through 2025. M3 represents broad money supply including cash, deposits, and money market instruments.
Gold: Gold price universal across regions. 1970: $35/oz (Bretton Woods fixed rate), 2025: ~$2,650/oz. Gold serves as a traditional inflation hedge and store of value benchmark.
House Prices: US data from FRED series CSUSHPISA (1970 median ~$23,000, 2025 ~$420,000). German data estimated from historical construction costs and wage ratios (1970 median ~€45,000 in today's EUR equivalent from ~DM 88,000, 2025 ~€500,000). Represents largest expenditure for most households and primary measure of asset price inflation.
MSCI World Index: Global equity market benchmark covering developed markets. Using Price Index (NOT total return): 1970 base index ~100, 2025 ~4,500 (~45x growth). We use the price index, not total return, because we're measuring purchasing power of the asset itself - how much does a share cost in labor hours - not investment returns. This is consistent with using house prices (not rental income) and gold prices (which has no yield). If wages had kept pace with stock prices, workers could buy the same number of shares per hour worked as in 1970. Dividends represent the yield/return on owning the asset, not the cost to acquire it.
Inflation (Government Provided): US CPI from BLS (1970: 37.9, 2026: 326.588), German CPI from Destatis (1970: 100, 2026: 438.58). CPI measures consumer prices, but major components are heavily influenced by government intervention. Food prices reflect substantial subsidies (EU farm subsidies average 33% of agricultural income, meaning supermarket prices show only about two-thirds of the true production cost), and housing costs are shaped by rent controls, regulations, and subsidies in both regions. As such, CPI increasingly measures consumer affordability after government intervention rather than true underlying economic costs. While valuable for gauging purchasing power and cost of living, it may be less reliable as a measure of economic health or wealth-building capacity compared to unsubsidized metrics like asset prices.
Salary Type Conversions: Totalo (total employment cost) converted to gross by dividing by 1.20 (assumes ~20% employer social security). Net converted to gross by multiplying by 1.60 (rough approximation of combined tax and social security burden). These are simplified estimates; actual rates vary by jurisdiction, income level, and personal circumstances.
Work Hours for House: Calculated as (Median House Price / Hourly Wage). Compares purchasing power in terms of labor time required to afford median housing in 1970 versus today.
Time Series Visualization: Historical progression uses exponential interpolation between 1970 and 2025 values. Actual historical values would show more volatility; this is a simplified model for illustrative purposes.
Limitations: This analysis uses simplified conversions and estimated historical data where precise records are unavailable. German 1970s wage data is particularly limited due to currency changes (DM to Euro) and reunification. Regional minimum wage variations (state/city level) are not reflected. Purchasing power comparisons across currencies use current exchange rates rather than purchasing power parity adjustments. Tax and benefit calculations are rough approximations.
Data Updates: Current values as of January 2025. Values are updated periodically to reflect current economic conditions.